Dixon Technologies Q1 Review: Goldman Sachs Hikes Target Price — Is This A Buy Signal?
Dixon Technologies witnessed a strong ramp-up in its operations in the June quarter, but customer stickiness is a key monitorable, brokerages noted, as the company reports its first-quarter result for the financial year ending March 2026 on Tuesday.
During the April-June period, Dixon Technologies’ topline, or revenue from operations, rose 24% to Rs 12,863 crore, compared to Rs 10,292 crore in the previous quarter ended March 31, 2025.
A key highlight for the company was revenue from the Mobile & EMS division climbing twofold to Rs 11,663 crore. The Mobile & EMS division contributes 91% to Dixon Tech’s total revenue.
Key Highlights:
- Revenue up 24% to Rs 12,863 crore versus Rs 10,292 crore (Estimate: Rs 12,155 crore)
- EBITDA at Rs 482 crore versus Bloomberg estimate of Rs 389 crore
- Margin at 3.8% versus Bloomberg estimate of 3.2%
- Net profit down 43% to Rs 225 crore versus Rs 400.8 crore (Estimate: Rs 221 crore)
Brokerages had mixed reactions to Dixon Technologies’ Q1 results. Goldman Sachs maintained a ‘sell’ rating on the company but hiked the target price to Rs 11,110 from Rs 10,030 earlier.
Goldman Sachs observed a strong ramp-up in Dixon Technologies’ operations in the June quarter and sees good value addition in the company. However, it also offered some scepticism regarding whether or not it will be enough to drive customer stickiness.
On the other hand, Investec has maintained a ‘buy’ call on Dixon Technologies, with an unchanged target price of Rs 20,000.
Investec observed a strong first-quarter result for the company, which could allay fears from competition. The brokerage firm further noted that Dixon Tech’s June quarter earnings surpassed its estimates by 2-4% and were 6-7% higher than consensus estimates.
What’s Next for Dixon Technologies?
With Dixon Technologies focusing on components, it is strengthening its competitive positioning and increasing customer stickiness, Investec noted. Going forward, Investec expects the EMS company to grow its EBITDA and profit at a compounded annual growth rate of 38% and 41%, respectively.
The brokerage firm also likes Dixon Tech’s ‘opportunistic approach’ and focus on increasing value addition without compromising on capital efficiency.
